The CBA/CICA Joint Committee on Taxation comments on proposed subsection 40(3.61) of the Income Tax Act relating to relief for estates on capital losses. While the new rule, contained in Bill C-33, is welcome, it is too narrow in its application. The Joint Committee recommends that a rule be introduced to exclude the application of subsection 40(3.6) when shares held by a spousal trust are redeemed following the death of the spouse. Also, a similar rule should be introduced for alter ego trusts and joint spousal trusts.

Printable copies are available at no charge to CBA members at any time and are available to non-members for 90 days after publication. For a printable copy, please click here. To order a hard copy from our Publications department, please contact pubs@cba.org.